How do I check a tree service’s customer mix of homes, commercial and municipal work?

Request revenue split by customer type: homeowners, property managers and commercial sites, and any public bodies. Ask for the top accounts by name and by sales. If a few contracts carry most of the revenue, the business is only as stable as those relationships, and a buyer should meet those customers if the owner permits.

Look at how the work is won. Homeowner jobs come from reputation, reviews and referrals, so check the review pages and how quickly quotes are answered. Commercial accounts usually come from relationships and repeat visits. Public work is often tendered, so ask when each contract ends, whether it is renewable and what the bid process demanded in equipment and paperwork.

Also compare margins. Large contracts can look impressive yet pay thinly once crew time, disposal and equipment are counted, while smaller residential jobs may carry better pay for the same hours. Ask the owner which type they would grow and why. Your accountant can break the figures down, and a lawyer can review contract terms, including whether a contract can be passed to a buyer at all.

Key takeaways

• Ask for revenue by customer type across several years, with top accounts named.
• Find out when any contract ends and whether it can pass to a buyer.
• Compare margins between small residential and large contract jobs.
• Meet key commercial customers before closing, if the owner agrees.